Depop Sellers Struggle with Payment Delays Amid Tech Troubles

Depop Sellers Face Payment Delays and Unexpected Fees

Sellers Struggle with Delayed Payouts

In recent months, an increasing number of sellers on the fashion resale platform Depop, acquired by Etsy for $1.6 billion in 2021, have reported experiencing repeated delays in receiving their payments. The app, which functions as a virtual marketplace for second-hand clothing and accessories, allows sellers to showcase their items through photos and hashtags, while buyers can browse, make offers, and purchase. Typically, sellers receive payment, less Depop’s commission, two days after the item is delivered to the buyer.

One streetwear seller, operating under the username @fentoozler791, shared their experience with The Zero Byte, stating that a $200 payment for multiple packages was pushed back by more than a week. The Depop app initially indicated that the payment would be processed on a Wednesday, but each day, the payout date was postponed by an additional day. Despite several attempts to contact Depop’s support team, the seller received no response.

“Depop didn’t reply with an actual written out response until I sent another request threatening to not use their services anymore. It seemed like they didn’t care until they realized they’d be losing my money from all the fees they’ve charged me,” @fentoozler791 told The Zero Byte. “I’m lucky that my begging and lengthy paragraph finally persuaded them, but I never got a direct answer as to why this had happened.”

Widespread Reports of Payment Issues

Numerous other sellers have shared similar experiences on various social media platforms, including the r/Depop subreddit, X, Facebook, and Instagram. They report that payout dates are consistently being pushed back by one day at a time, without any explanation from Depop.

@fentoozler791, who has been selling on Depop for more than a year, expressed concern about future transactions, stating, “I just sold an item last night and dropped it off at the post office today and I’m concerned I will have to contact Depop again after it’s delivered. After this I’m not sure I’ll sell anymore on Depop.”

Depop Identifies and Resolves Payment Issue

When The Zero Byte initially brought these sellers’ payout issues to Depop’s attention last week, a spokesperson acknowledged that the company’s support team had been dealing with a higher-than-usual volume of tickets but did not provide a reason for the payment delays. However, after further inquiries, Depop informed The Zero Byte on Wednesday that they had identified an issue in their automated payouts system that was causing the delayed payments.

“We’re really sorry that some sellers have been experiencing payout delays over the last week. We identified an issue in our automated payouts system that has now been fixed, and all pending payments have been sent out to affected sellers,” Depop said. “These should be received within the next few days, depending on bank processing times.”

Depop stated that sellers who had reached out to the support team should have received a response by today and that the company will proactively notify its high-volume sellers about the issue.

Unannounced “Buyers Service Fee” Raises Concerns

In addition to the payment delays, Depop has been implementing an unannounced extra fee, labeled as a “buyers service fee.” When questioned about this fee, a Depop spokesperson suggested that it might be part of a test, but the test is being applied inconsistently across the app, resulting in some buyers having to pay an additional few dollars while others do not.

Depop’s Zendesk account had a page explaining the fee, but it has since been made private. The now-private help page stated that the extra 5% fee was intended to “upgrade features, improve security, and optimize performance.”

YouTube creator Just Old Things expressed frustration with the additional fee in a video, saying, “What the f— is our 10% covering then, if you need an extra 5% from the buyers as well? You couldn’t speedrun blowing up your company any quicker than what Depop’s currently trying to do.”

Depop’s Growth and Future Plans

Despite the recent issues faced by sellers, data from Apptopia indicates that Depop’s daily active user (DAU) counts have been increasing. Worldwide mobile DAUs have risen by 30% year-over-year for this quarter. Depop reported to The Zero Byte that it gained 5 million registered users last year, bringing its total userbase to 35 million.

“We know that prompt payouts are crucial for our sellers, and we’re making changes to our systems to ensure that we can process higher volumes of payouts quickly, as our community grows,” Depop said.

As Depop continues to expand, it remains to be seen how the company will address the concerns of its sellers and ensure a smooth and reliable payment process for all users on the platform.